Petrol price rise may lead to boom for green motoring

A rise in petrol prices may cause drivers to shift to more fuel efficient cars and not necessarily drive less, experts say.

Increases to the petrol price will mean more people will switch to fuel efficient cars, experts say. EPA/ALI HAIDER

ABU DHABI // An increase in petrol prices may encourage drivers to shift to more fuel-efficient vehicles and not necessarily use cars less, experts say.

“Commuter trips will not likely change unless there is more public transport, especially in Abu Dhabi and the Northern Emirates, which are still largely car dependent,” said Glenn Havinoviski, associate vice president of the US traffic management company Iteris, which opened an Abu Dhabi office in 2011.

On Wednesday, the Ministry of Energy announced that it would deregulate fuel prices beginning on August 1.

“The level of increase in fuel will add transport costs for all road users, including those who use taxi and public transport,” said Dino Kalivas, chairman of the driver education and training committee at the International Road Federation.

“While there is a correlation between the price of fuel and the level of motor vehicle use, preferences for vehicles with fuel efficiency will take priority, rather than less vehicle use.”

Reducing the number of vehicles that clog the UAE’s roads does not necessarily translate into a decline in road traffic accidents, Mr Havinoviski said.

“Many of those accidents may happen during off-peak periods, and involve issues such as speeding or reckless driving,” he said. “It is harder to speed when traffic is bumper-to-bumper.”

Carmakers, he said, may finally see opportunities to sell diesels, hybrids and electric vehicles in the UAE, which have been making an impact elsewhere.

“One of Toyota’s best-selling cars in the US is the Prius hybrid, which hasn’t been sold in the UAE.”

Suhail Al Mazrouei, the Minister of Energy, said on Wednesday that deregulation would encourage the use of fuel-efficient vehicles, including electric and hybrid cars.

The use of electric vehicles could change the quality of life in the UAE, but accessibility of charging stations was key, said Frans Anton Vermast, a strategy adviser for the city of Amsterdam in the Netherlands.

To promote the use of electric vehicles, the UAE would need to install more charging stations. Charging poles, he told a traffic conference in Abu Dhabi, should be available to all.

“The key point (of the deregulation) is how much of an increase is in the price per litre,” Mr Kalivas said. “In the case of the UAE, the alternative means of transport needs to be attractive, available in frequency and comfortable.”

Mr Havinoviski said that the reduction of travel frequency and distance would largely depend on how high the prices rise.

The Gasoline and Diesel Prices Committee will announce on the 28th of each month the prices for the following month, starting this Tuesday for August.

“If they rise too much, a lot of families may not be willing to drive gas-guzzling vehicles as often or take random trips,” he said. “Although Dubai has an extensive network of bus and rail, which Abu Dhabi is also moving toward, in the end, families in the UAE need their cars.”

To meet long-term transport needs, the Government could invest the extra revenue in public transport and improved infrastructure.

“If the Government is still setting prices for fuel, even if it is reducing or eliminating subsidies, it may be of benefit to allocate a percentage of the revenue to expand public transport,” Mr Havinoviski said.

“It would be ideal for areas that do not have bus or rail services, and prioritise express bus operations on city streets to provide more travel choices.”